Evotec (EVT) Q1 2025 earnings summary

Executive summary

• Q1 2025 group revenues declined by 4% to €200 million, mainly due to a soft shared R&D market, while Just – Evotec Biologics outperformed with double-digit growth.

• Strategic collaborations, especially with BMS, advanced and generated significant milestone payments; a new grant from the Korean government supports antibody-based lung disease treatments.

• A new strategy was unveiled post-period, focusing on high-growth segments, operational excellence, and a simplified business model.

• Strategic review completed and execution initiated to address market challenges.

• Net loss widened to €31.6m from €20.7m in Q1 2024, driven by operating loss and lower deferred tax income.

Financial highlights

• Group revenues were €200 million, a 4% decrease year-over-year; at constant FX, revenues would have been €195.8m (down 6%).

• Shared R&D revenues declined 9% to €140.6m; Just – Evotec Biologics revenues grew 10–11% to €59.4m.

• Adjusted group EBITDA was €3.1m, down 60% year-over-year but slightly better than planned; Just – Evotec Biologics contributed €10m.

• Gross margin declined to 13.6% from 16.2–16.7% year-over-year.

• R&D expenses reduced by 33–34% to €10.8m, reflecting focus on scalable platforms.

Outlook and guidance

• Full-year 2025 guidance reconfirmed: group revenues €840–880m, R&D expenditure €40–50m, adjusted EBITDA €30–50m.

• Midterm outlook unchanged: revenue CAGR of 8–12% (2024–2028), adjusted EBITDA margin expected to exceed 20% by 2028.